Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

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Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Equity Bottom-Up

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<p>In this note, we explain how authorities in China measure the development of the country's express parcel delivery industry using the China Express Development Index, or CEDI. </p>
<p>We believe CEDI is worth watching. Its December 2020 performance suggests sector growth is moderating, and that express companies must continue to invest aggressively to lift service levels. </p>
<p>CEDI's recent trends support our investment thesis for the sector, which is that pressure to consolidate is rising here in 2021. We believe <a href="https://www.smartkarma.com/entities/best-inc" target="_blank" data-smartkarma-citation="entities:25494:1" rel="noopener">BEST Inc (BEST US)</a> may become an attractive acquisition target over the next 12 months; we rate its shares Buy. </p>




In this note, we explain how authorities in China measure the development of the country's express parcel delivery industry using the China Express Development Index, or CEDI. 
We believe CEDI is worth watching. Its December 2020 performance suggests sector growth is moderating, and that express companies must continue to invest aggressively to lift service levels. 
CEDI's recent trends support our investment thesis for the sector, which is that pressure to consolidate is rising here in 2021. We believe BEST Inc (BEST US) may become an attractive acquisition target over the next 12 months; we rate its shares Buy. 

How Chinese Authorities Measure the Development of the Express Sector, & Why It Matters to Investors

ZTO Express Cayman

How Chinese Authorities Measure the Development of the Express Sector, & Why It Matters to Investors